Incentive-Based Compensation: Dodd-Frank and the Example of Europe

After a four-year hiatus, some of the more controversial elements of the executive compensation rules mandated by the U.S. Dodd-Frank Act are back on the table. Parallels can be drawn with EU rules (including principles set forth in the AIFM Directive, ESMA guidelines and domestic regulation in the Member States) and their evolution from draft to final stage, where certain concepts were unexpectedly introduced or expanded in spite of industry opposition.